Report on the International Marketing

INTRODUCTION of the International Marketing

Businesses are now not sustaining at the local level only rather pitching its mark across borders. Every industry tries its best to spread their name and their products to a larger audience internationally considering the demand of the product and to get large selling of their products in return. It not only increases the company’s business but also provides the customers with the chance of using their products at regions where it wasn’t available before. Eventually, every businesses that tries to embed internationally, grows its activities and take the advantage of worldwide atmosphere. 

Organizations involved in international business or simply moving towards globalization has high significance in its many domains increasing the global trade to rely on goods and services with increased international standards especially in terms of manufactured goods. There has been a massive increase in the number of companies involved in trying to go for international business and many have successes easily with best tackling of the issues related to internationalizing as it composes of various different challenges especially for the companies that are seeking international business and to overcome these, numerous strategic aspects should be prioritized before making international commitments and high rates of flexibility should be adapted to compensate the changing patterns of a new market with completely new environment. 

1 – Ignoring the largest fixed cost of the International Marketing

Any business shifting from UK to any other country should first consider the fixed costs related to buying property in the host country where they’re planning to incorporate its roots i.e, China in the given case. As first buying new property there is the largest cost to be incurred to implant the installment of new warehouse and this result in sub-optimal performance and way too high costs. Businesses starting up in a new country face significant pressure due to current economic climate of the country. It first needs to get a hold of a supplier market that can deliver the best quality services and high sophisticated deals at acceptable prices to be implemented in potential effective ways. 

2 – Responding effectively to disaster of the International Marketing

No one can ensure the occurrence of disasters and with what frequency it can happen all across the world and there is clear challenge for organizations who are trying to embed its roots in global presence and what impact it will leave on its customers, business, people and reputation and what measures they will be taking to tackle and manage the consequences of such disasters to keep their business running as there can be many direct and indirect consequences as even no matter where the disaster will take place – UK or even China, the company will have to face the same issues of its proceedings and strategic plans to robust crises management and its effect on the supply chain. 

3 – Repatriating cash back on the agenda of the International Marketing

Will the company be able get cash out of UK as and when they need to? This is to ensure effective cash management for a company seeking to work in a new country and its key priority in international grouping that includes great flexibility between cash and the territories of efficient and timely basis and this is to overcome the objectives needed to meet timely objectives for risk management and this also includes the balance of accumulating sheets used to reduce transaction activity especially in the times of economic downturn and the reasons include meeting wide tax planning structures, supporting external transactions and ensuring cash management through international territories and mitigating exchange risks. 

4 – Hidden risks of the International Marketing

Hidden risks such as extra-territorial reach and due diligence are the main risks that UK might face for holding investments that reveals exposure for real but also the extent remains very outrageous that how proper Acts should be taken in consideration for activities proceeded in China. But the need is to overcome the unclear criminal liabilities for deemed culpable for overseas holding to decide for particular subsidiary and risks faced for inventors to minimize risks and to maximize value and to reflect risks associated with geographical and sector business models for the implication of actual practices. It should be taken into consideration that mitigating these risks can be crucial or else high rates might come to light for tackling previous offences subsequently. 

5 – Right strategic decisions of the International Marketing

Before setting up roots into a new country, the first and foremost risk to be considered is to evaluate whether your strategic decisions are right or not such as the impact of cash flows and the insights to impact decisions and frequent demonstration of proper models for the acquisition of economic scenarios and the due diligence to analyze the restrictions of the country where organization is planning to run its capacity considering the detailed risks based on economic scenarios. 

6 – Mitigating third part contracts of the International Marketing

High priority for international business is the need to keep high control to keep international standards into priority where operations to deliver need to be evaluated for perfect performance of financial results and the significant challenges for incorporation of value for money and to create compliance based contracts to maximize revenue and costs through losing risks that add value in return and ensure opportunity for parent companies starting its setup in a new country. This also includes the exposure to reputational and operational risks where partial contracts might fail to deliver potential results and knowing whether they are providing relevant services and receiving equal pay out.

7 – Keeping custom duty on radar of the International Marketing

Businesses should ensure their safe and secure trading policies and to take advantage of new supply chains and advancement of new business and how it can get affected with new rules and regulations and the consequent advantages for global trade visibility including custom authority for effective key development and emergence of greater economic operations and identification of custom legislations such as incurred in transferring goods from UK to China to meet the needs of new market requirements and to consider the accumulative taxes and tax accounting management to include compliance for potential penalties. 

L01

UHT milk for children is a popular and high profiled organization based in London that manufactures milk for children aged between 3 – 11 years and is one of the well-known milk brands for children. For expanding its success in Chinese market, UHT will have to face many international rules and regulations including the contemporary issues that are discussed as below:

• Trade protectionism:

It is a kind of government strategy that is used to protect the specific area of industry especially from international influences and its main aim is to reduce the unfair competition caused by international companies such as monopoly and other unfair business policies. Trade protectionism ensures less competition and facilitates businesses for international trade. It further composes of the following key barriers:

o Tariffs of the International Marketing

Tarrifs or simply known as taxes are imposed on imported goods and services and the tax rate depends on the goods and its type and for what purpose it will be needed by the local customers. These tariffs are imposed to protect the local business. 

o Import quotas of the International Marketing

The effect of import quotes is almost similar to that of tariff and it is protect the local business hence the government put restriction on the amount that can be imported. 

o Administrative barriers of the International Marketing

It is used to increase the product price in country for which the government imposes extra barriers and these barriers are especially imposed on food products ; the safety measures and environmental standards. 

o Anti-dumping legislation of the International Marketing

This policy is to keep a check on organizations who sell lower quality or low priced products in international markets to gain profit and this makes imports cheaper and very much affect the local market and sometimes it ends in closing the local business. These legislations further include direct subsidies, international patent system, export subsidies and political and social impacts.

• Universal payment methods of the International Marketing:

It is used to protect the multinational company trading system and payment security. For European countries like United Kingdom, pan-european is popular and this ensures payment method for international payments in another country. 

• Currency rates policy of the International Marketing:

This is to ensure the regular payment system and it is a vital issue that needs to be considered for countries to maintain fixed and flexible exchange rate system and to maintain the exchange policy rate which is essential for host country to consider. 

• Political issue of the International Marketing:

Many issues involved in political instability impact the international business and mainly a negative effect to the business organization that works along-with government’s decisions and implementation policies for trade protections and ultimately incurred to cut the costs and reduce profitability for the organizations trying to internationalize. It reduces the business freedom in the new market where the new business starts its operations and some main political issues include terrorism, war, currency felicitation and riots. 

Ethical and Social issues that should be considered by the SME company:

The company will have to run through and maintain ethical and social issues critical to the international business and important to the host country and hence the company should be responsible towards these issues to ensure welfare of the business as well as state. It includes ethical conducting of business and the company should honor the local traditions and always respect the local community and its individuals to represent the whole organization responsibly. They should understand that they are running in another country with another nation and they should cater the requirements of the nation that matches their local requirement. This includes taking actions and strict measures to match the standard quality of products and to protect the environment and this is regulated by public relations. 

L02

The evasion of global market has completely transformed all the economic, social and political factors that run with profound manner. Global businesses run with the force of trade liberalization as well as help the IT regulations of the host country. In today’s 21st century, the business market has owned rapid growth and is way too developed and clearly not confined to just one economic pattern. And these factors ensure how new businesses sustain in with customer lives, how it all work together, how it ensures health care and how it exercises the social and ethical services for communication and accommodation and how they invest in with other parties. 

Perspectives on globalization and international business in 21st century

Globalization is rather a new concept for business organizations that is specifically used for businesses that run internationally and it makes the business go more easy and comfortable with it close enclosure to technology and information and increased cross-border exposure that facilitates the company with internalization and supplier and administrative sources for the target customers. Following are some of the factors that must function for the easy flow of organization in the twenty-first century:

- Political systems of the International Marketing:

This includes the consideration of two diversified sectors as in to ensure smooth running of the business such as collectivism and individualism. For example, the discrepancy of demographic states and power legislative states.

- Economic systems of the International Marketing:

It includes the type of economy system that the host country is following and also from the origin of the organization where it originated such as market economy, command economy and mixed economy and how the company chooses one of these styles.

- Legal systems of the International Marketing:

It includes the specification of rules and regulations that are essential for modification of businesses in international markets. It consists of the laws and regulations to be implied on businesses according to the traditions and customs of the country and also the trade laws. 

L03

Following are the ways through which a company can enter the international market:

 Licensing of the International Marketing:

Licensing includes franchising and content manufacturing as well as trade-marking and it refers to the procedural actions required to license the actions of a business to make use of technology or its own brand name in another country with all the rightful laws.

 International agents and distributors:

These are one of their kinds of channel for international marketing that includes agents who sells the company’s inventory with his own commission and it is considered to be a very low cost system for marketing and not just SMEs but many high end renowned organizations also have their international agents.

 Strategic alliances of the International Marketing:

It is a series of relationship that runs between the organization and the industry and it used to faclitiate the alliance between competitors. It also involves the sharing of specialized expertise, management or even production plants for research and development.

 Joint ventures of the International Marketing:

These are rare and newly created companies that help international markets with accessing their knowledge and core competencies for technology and expertise into entering the international market. They provide support for marketing and distribution as well. 

 International sales subsidiary:

It includes the expansion of not just the business but the whole business plant as well. It provides export facilities and tax benefits as well as setting the manufacturing plant in foreign market allow support for workers and raw materials. 

L04

A company can decide to internationalize by taking advantage of any theory suitable with its operations and its business strategy in accordance with the market strategy which highly depends on the company itself that how it will operate to motivate its customers in the new marketplace. This works keeping in mind the tariff rates, transportation rates, marketing costs and strategy and its adaptation for suitable incorporation of theories that clarifies why the company actually needed to decide to go international and these theorie4s help them to chose the reason right for them to internationalize:

- Fits-mover advantage of the International Marketing

This predicts that the business should first take its own advantage by itself for smooth business proceedings. For instance, when one company purchases goods from another company at lower rates just to gain profit itself. Such type of trading facilitates countries on larger scale as well where two countries get benefited with international business and this is the reason why companies tend to go for internationalization. 

- Potential for growth of the International Marketing

All businesses expect to gain highest growth for their ventures and the get motivated enough when the demand for their products increase to an international level for quality productions and functions and this allows companies to opt globalization as a easy and captivating way of serving its customers all around the glove who praise their work.

- Small home market of the International Marketing

When some companies have small home markets i.e, the sale rate is low just because the industry and market is low there so the companies try to enter new markets with potential new customers and to give a chance to new marketplace by selling their products and sometimes also starting their productions in there on a large scale. So it is the most convenient way to cater more audience and earn more profit just by targeting international markets. 

- More customers of the International Marketing

When a company has smaller number of customers even at having the best incorporation of qualities and standards yet the low number of customers gives them a solid reason to go international and to get diversified with more motivating customers and to engage more with a new industry and the individuals working there.

- Discourage local competitors of the International Marketing

Some companies have to adopt this reason when their own local competitors discourage them for competition for being afraid of losing with the potential customers; they simply deny taking part in competition which affects the whole business genre. This is the reason some businesses have to go international to test the local competitors of a different country and how they react to the company itself. This increases the opportunity for new customers to buy at different rates for the different products in international markets. 

Apart from this, there are some alternative theories of internationalization as:

o Trade theories

o Traditional theories

o Further theories

A business can make use of any of these theories to go international and to take the advantage of company entertaining international standards with absolute cost advantages and model of trades. For such reasons, market imperfection theory is the most generally applied theory whereas there’s another theory named as cost advantage theory that allows the firms to have advantageous cost effective exchange of products and commodities with other countries providing as a beneficial exchange between countries. 

L05

There can be a direct as well an indirect impact of multinationals as they provide the most attractive benefits and not just add to their own business but also add highly to the social and economic development. And there are also cases where a country’s name gets benefited due to the internationalization of their local brand or business. Following are the impacts of multinationals on both home and host nations:

Impact on home country

 Providing employment:

Recruiting local locals to provide services internationally not onlysolves the problem of unemployment but also grows the economy and also increased the chance of development of the country.

 Tax revenue:

Linking international nation to your home local nation provides advantage from tax and other services resulting in the gross production that ensures the country’s strength and increases the reputation of the country worldwide with new ideas and development.

 Improved balance of payments:

Balance of payments can be improved by the home country by providing direct capital support to industry and also to get remittance as well as foreign currency by exporting their valuable goods and this makes them not to purchase goods from outside rather consuming their own local manufactured products.

 Technology transfer:

Application of new technology in production increases the transfer of advanced technology from country to another.

Impact on host country

 Uncertainty:

It is the most difficult problem for host country because they never know when a company might shift to another country depending on the growth and rapid demand.

 Increased competition:

The local companies of the host country face a lot of competition because of the introduction of those giant new foreign companies that sometimes even make the survival of local companies to be difficult. 

 Influential pressure:

The large investments of multinational companies hoard the political system of the host country and hence make diverse influential pressure for sustainability. 

 Profit exports:

There is very negative impact on the economy when the host nation has to derive the profit from the home nation of the company with its resources. 

 Cultural and social impact:

When a multinational, enters a new company it might affect the culture of the host company which is very offensive for some nations as they do not really want any changes in their social and cultural aspects and they capture a large market for vast impact which negatively impacts the host country. 

L06

It is undeniable that UK is the world’s greatest marketplace that already has its good regulations and many local inventors and then the company from that country decides to enter a new market which is on the same scale of largest marketplace as being China that itself has a large market and the best strategies for increased marketplaces and they are pro in implementing their marketing policies internationally allowing the international companies to take more advantage of those countries with suitable advancements and placements of their strategies and ideologies. They are in more advantage if the conditions of the host country are intact and in good state which does not make them to suffer from their marketing policies. The market of China is very much crowded with local marketers and local companies and do not even allow international companies to proceed with their operations very easily as they are very much considerate about their own local companies unlike other countries and they work of maximizing their own production so that more and more customers and local investors can get benefited with their own local productions.

It includes the successful conduction of operations keeping in mind the basic factors that may hinder their way or may ensure their basic growth. Such as:

- Growth rate of the International Marketing:

The steadily growing economy of China has allowed everyone to take advantage of steady operations and this ensures expansion of economy and its GDP rate is also higher with other nations.

- Size of the economy of the International Marketing:

China has a great marketplace and one of the largest economies of the world that can easily take control of other nations or whole world market and it provides a large number of customers for smooth provision and marketing of the goods which is why it is the most popular and advantageous marketplace.

CONCLUSION of the International Marketing:

Whenever a local business achieve better marketplace and better position in its local market then opting international business becomes a traditions which not only provides with accumulative benefits but also many supportive economic, environmental and technological benefits. It helps to generate business with-in  a good marketplace with new learning environment where proper decisions are required to work on for smooth functioning and as a result, increased profit rates can be generated to overcome the international needs for maximized standards and to provide the company with strength of achieving the best in all favorable conditions.

The need for new HR learning approaches that are continuous during one’s

career appears to be the key to addressing the complexity of the global marketplace.

Managers are going to be required to modify their strategic decision-making into a

making a series of processes to make global strategic decisions. Strategic decisions

have been described as those that are important in terms of the ‘actions taken,

resources committed or precedents being set’ (Eisenhardt and Zbaracki 1992, 17).

The process of strategic decision-making has become a mix of stepwise rationality

and politics, where power determines what decisions are made. In a model where

choices involve power, rationality is bounded and chance plays an important part in

decision outcomes. However, intuition and emotion are often intertwined with the

process (Patton 2003; Spender 2003). Recognizing the limits of traditional

approaches, we suggest that there is a need to look beyond the model of

organizational goals and rational decision-making and to incorporate those who

encompass the complexity and diversity of organizational life. In addition to the

cognitive and political elements of decision-making, the model should consider issues

such as intuition, emotion and social factors (Eisenhardt and Zbaracki 1992).

Developing these skills in global managers is a unique challenge to HRM in global

organizations and one that needs to be developmental (i.e., continuous) in nature

The need for new HR learning approaches that are continuous during one’s

career appears to be the key to addressing the complexity of the global marketplace.

Managers are going to be required to modify their strategic decision-making into a

making a series of processes to make global strategic decisions. Strategic decisions

have been described as those that are important in terms of the ‘actions taken,

resources committed or precedents being set’ (Eisenhardt and Zbaracki 1992, 17).

The process of strategic decision-making has become a mix of stepwise rationality

and politics, where power determines what decisions are made. In a model where

choices involve power, rationality is bounded and chance plays an important part in

decision outcomes. However, intuition and emotion are often intertwined with the

process (Patton 2003; Spender 2003). Recognizing the limits of traditional

approaches, we suggest that there is a need to look beyond the model of

organizational goals and rational decision-making and to incorporate those who

encompass the complexity and diversity of organizational life. In addition to the

cognitive and political elements of decision-making, the model should consider issues

such as intuition, emotion and social factors (Eisenhardt and Zbaracki 1992).

Developing these skills in global managers is a unique challenge to HRM in global

organizations and one that needs to be developmental (i.e., continuous) in nature

The need for new HR learning approaches that are continuous during one’s

career appears to be the key to addressing the complexity of the global marketplace.

Managers are going to be required to modify their strategic decision-making into a

making a series of processes to make global strategic decisions. Strategic decisions

have been described as those that are important in terms of the ‘actions taken,

resources committed or precedents being set’ (Eisenhardt and Zbaracki 1992, 17).

The process of strategic decision-making has become a mix of stepwise rationality

and politics, where power determines what decisions are made. In a model where

choices involve power, rationality is bounded and chance plays an important part in

decision outcomes. However, intuition and emotion are often intertwined with the

process (Patton 2003; Spender 2003). Recognizing the limits of traditional

approaches, we suggest that there is a need to look beyond the model of

organizational goals and rational decision-making and to incorporate those who

encompass the complexity and diversity of organizational life. In addition to the

cognitive and political elements of decision-making, the model should consider issues

such as intuition, emotion and social factors (Eisenhardt and Zbaracki 1992).

Developing these skills in global managers is a unique challenge to HRM in global

organizations and one that needs to be developmental (i.e., continuous) in nature